Finding 40109 (2022-002)

Material Weakness
Requirement
A
Questioned Costs
-
Year
2022
Accepted
2023-03-30
Audit: 51004
Auditor: Eide Bailly LLP

AI Summary

  • Core Issue: One out of 19 non-payroll expenses tested was missing required signatures, indicating a lapse in internal controls.
  • Impacted Requirements: All expenditures must be properly approved and documented to ensure compliance with federal program guidelines.
  • Recommended Follow-Up: Management should enforce a policy requiring both the Director and Manager of Business Operations to approve all non-payroll expenditures.

Finding Text

U.S. Department of Education Education Innovation and Research CFDA #84.411C Activities Allowed Allowable Costs Period of Performance Material Weakness in Internal Control Criteria: A complete system of internal controls requires all expenditures to be properly approved and supported by appropriate documentation. In addition, all expenditures charged to the federal programs are required to be allowable costs under the program and allocated in accordance with CFA?s cost allocation plan. Condition: One out of 19 non-payroll expenditures tested lacked the required signature of the Director of Fiscal and Business Operations. Cause: Due to an oversight by CFA, the signatures of both the Director of Fiscal and Business Operations and the Manager of Business Operations were not present on the expenditure documentation. Effect: Improper expenses may be improperly approved. Questioned Costs: $0 Context/Sampling: A nonstatistical sample of 27 transactions out of 135 total transactions were selected for testing which accounted for $203,609 of $774,665 total federal program expenditures. Repeat Finding from Prior Year : No. Recommendation: We recommend CFA's management require both the Director of Fiscal and Business Operations and the Manager of Business Operations to review and approve all non-payroll expenditures. Views of Responsible Officials: Management agrees with the finding.

Corrective Action Plan

U.S. Department of Education Education Innovation and Research CFDA #84.411C Activities Allowed Allowable Costs Period of Performance Material Weakness in Internal Control Condition: One out of 19 non-payroll expenditures tested lacked the required signature of the Director of Fiscal and Business Operations. Cause: Due to an oversight by CFA, the signatures of both the Director of Fiscal and Business Operations and the Manager of Business Operations were not present on the expenditure documentation. Management?s Response and Corrective Action Plan: Staff will ensure that both staff sign all expenditure documents. Responsible Individuals: Amanda Burke, Jessi Black Anticipated Completion Date: 3/23/23

Categories

Allowable Costs / Cost Principles Internal Control / Segregation of Duties Material Weakness Period of Performance

Other Findings in this Audit

  • 40108 2022-001
    Material Weakness
  • 616550 2022-001
    Material Weakness
  • 616551 2022-002
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
84.411 Investing in Innovation (i3) Fund $775,862
84.334 Gaining Early Awareness and Readiness for Undergraduate Programs $596,985